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The Federal Government, on Wednesday has inaugurated the project delivery team tasked with the recapitalisation and full commercialisation of the Nigerian Agricultural Insurance Corporation, and the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending.
It said this would enhance the efficiency, management, and capitalisation of the critical agricultural institutions, adding that the inauguration marked a significant milestone in the ongoing efforts to reform and reposition NAIC and NIRSAL to better serve the agricultural sector.
The acting Director-General, the Bureau of Public Enterprises, Ignatius Ayewoh, inaugurated the team on behalf of the Federal Government in Abuja, according to a statement issued by the Head, Public Communications, BPE, Amina Othman
“The recommendations for this reform stem from the Presidential Committee on Restructuring and Rationalisation of Federal Government Parastatals, Commissions, and Agencies, also known as the Orosanye Committee, and have been endorsed by the Federal Executive Council and the National Council on Privatisation,” BPE explained in the statement.
In his remarks, Ayewoh highlighted the importance of this initiative for Nigeria’s agricultural sector.
“Our goal is to create a strong, efficient, and well-managed organisation that will mitigate risks in the agricultural value chain, ensuring a secure environment for farmers and investors alike,” he stated.
The Managing Director, NIRSAL Abbas Masanawa, thanked the leaders of both BPE and NAIC for their commitment to the task.
He emphasised that insurance was only a pillar among the five key pillars of NIRSAL, as he outlined them to include insurance, risk sharing, technical assistance, rating mechanism; and bank incentive mechanism.
He consequently assured the PDT of NIRSAL’s unwavering support in achieving the food security goals of the Federal Government.
The PDT, chaired by Mr Toibudeen Oduniyi of the BPE, includes representatives from key stakeholders such as the National Insurance Commission, the Central Bank of Nigeria, Federal Ministry of Agriculture and Food Security, and the Nigerian Agricultural Development Fund.
The team was mandated to oversee the reform process, including the appointment of a transaction adviser to conduct due diligence and develop a comprehensive framework for the recapitalisation and commercialisation of NAIC and NIRSAL.
The terms of reference for the PDT include reviewing and recommending improvements to existing acts, policies, and regulations; and proposing institutional and organisational changes for the enhanced efficiency of NAIC.
It also includes advising on legal and regulatory frameworks for successful commercialisation, conducting status reviews of NAIC and NIRSAL to inform stakeholders of current conditions, and preparing and submitting comprehensive reports on the progress and recommendations of the transaction adviser, among others.
Ayewoh expressed confidence in the successful execution of the initiative, stressing that it aligns with President Bola Tinubu’s administration objectives of achieving food security and fostering a robust agricultural sector.
